According to “ Dishonesty in the Workplace: A Manager’s Guide to Preventing Employee Theft” by Richard C. Hollinger 30% of the population is dishonest all of the time, another 30% is situationally dishonest; and the remaining 40% is honest all of the time. So . . . . from which population did you hire?

Why do you even need to consider a HotLine ?
Because . . . your best bet in identifying internal theft or “misappropriations of assets” is by being that proverbial “fly on the wall”. Research conducted by the Association of Certified Fraud Examiners reveals that a “Tip” is the most common method of detecting fraud. Specifically, the research reveals that 40% of fraud detection is exposed due to verbal HotLines. The same study also found that organizations without a hotline lost twice as much money to fraud as those with a hotline in place.

A HotLine will provide your employees, suppliers, and other interested parties with an anonymous vehicle for reporting or discussing purported illegal or unethical behaviors. This is another option for those employees who feel uncomfortable coming forward and talking face-to-face due to fear, real or perceived, of retaliation by their peers or managers. Interactive communication generates more detailed information than one-way communication, like an anonymous note or a suggestion box. Your employees will have access to a skilled interview specialists, (similar to a 911 operator – who is always there) so that you get the information you need to investigate an allegation.

Exactly what types of issues will my employees talk about, if given the anonymous opportunity to talk??

Here are a few examples . . . . . . .

· Time Card Theft
· Inventory Pilferage
· Diversion of cash
· Diversion of other company assets

Here are a few discoveries you can expect to make . . .

* Accounting Irregularities

* Release of Proprietary Information

* Conflicts of Interest

* Retaliation

* Customer Relations

* Safety Issues and Sanitation

* Discrimination

* Sexual Harassment

* Employee Relations

* Substance Abuse

* Falsification of Company Records

* Theft of Cash

* Fraud

* Theft of Goods/Services

* Fraudulent Insurance Claims

* Theft of Time

* Kickbacks

* Unauthorized Discounts

* Product Quality Concern

* Wage/Hour Issues

* Workplace Violence/Threats

Professional organizations such as the AICPA encourages all organizations to establish an anonymous hotline, even those not required to do so by governance legislation. HotLines are recommended because of their proven effectiveness in catching fraud at the appropriate management levels. The recent wave of corporate governance legislation has focused attention on fraud prevention measures. With their proven record of deterring and detecting unethical activity, anonymous hotlines have become a critical internal control for many organizations.